MSV Life declares 2011 bonuses

MSV Life had declared Regular Bonuses in respect of with-profits plans for 2011. These amount to 2.25% for the MSV Comprehensive Life Plan (regular and single premium policies), 2.45% in respect of the MSV Comprehensive Flexi Plan (regular and single premium policies), 2.45% under the MSV Single Premium Plan and 2.45% under the with-profits options of the MSV Investment Bond and of the MSV Retirement Plan. On the 'Old Series' Endowment and Whole Life policies, a Regular Bonus of 2.2% of the basic sum assured plus bonuses was declared.

The Board approved a Regular Bonus of 2.45% on those Secure Growth policies which formed part of the portfolio of business transferred to MSV Life from Assicurazioni Generali S.p.A. during 2000.

The Board also approved a Regular Bonus of 1.75% on the Alico 78 policies and a Regular Bonus of 2.0% on the Alico 66 polices which formed part of the portfolio of business transferred to MSV Life in 2011 from American Life Insurance Company ("ALICO").

Chairman Roderick Chalmers said that during 2011, client demand for MSV Life with-profits products remained buoyant, reflecting the sustained popularity of these products as savings instruments that offer potential for a tax efficient, stable, medium to long-term capital growth.

"The most important factor that affects bonus rates on with-profits investments is the underlying performance of the funds invested. The bonus philosophy of MSV Life is centred on its ability to pay supportable bonus rates in the medium term. In keeping with industry practice, we therefore aim to smooth returns under our with-profits policies over the lifetime of the policies. Smoothing entails establishing reserves from certain favourable years to compensate for unfavourable investment returns in certain other years during the lifetime of the policy."

He said the MSV asset and currency mix, geographical spread and the quality of its assets meant that it was well placed to benefit from an upturn in investment markets.